Journal of Entrepreneurship, Management and Innovation (Jan 2024)
Defining analytical skills for human resources analytics: A call for standardization
Abstract
PURPOSE: Human resources (HR) analytics systems, powered by big data, AI algorithms, and information technology, are increasingly adopted by organizations to enhance HR’s impact on business performance. However, despite the widespread acknowledgment of the importance of “analytical skills” among HR practitioners in successfully implementing HR analytics systems, the specific nature of these skills remains unclear. This paper aims to address this ambiguity by firstly clarifying the concept of “analytical skills,” secondly identifying skill gaps that may hinder the effective utilization of computer-assisted analytics among HR practitioners, and thirdly advocating for standardization in the understanding of “analytical skills” within the business context, particularly within HR. METHODOLOGY: We examine business “analytical skills” through the theoretical framework of the knowledge, skills, and abilities (KSA) included in the Occupational Information Network (O*NET) content model. Using data from the O*NET database, occupations were classified into Human Resource Management (HRM) and Analytical occupations. Then, we identified the top highly required KSAs in analytical occupations and compared their levels with those of HRM occupations to pinpoint potential gaps hindering the effective utilization of HR analytics. FINDINGS: Using the O*NET database, which describes work and worker characteristics, we establish the highly required analytical KSAs in the business analytics context that might be labeled “analytical skills”. Then, the gap analyses reveal that important analytical KSAs, such as knowledge of sales and marketing, skills in operations analysis, and abilities in mathematical and inductive reasoning, are not expected from HR occupations, creating serious barriers to HR analytics development. In general, we have found that while HR practitioners possess some of the necessary analytical KSAs, they often lack in areas such as mathematics, computers, and complex problem-solving. IMPLICATIONS: Our findings underscore the need for standardization in HR analytics definitions, advocating for the adoption of the O*NET content model as a universal framework for understanding HR analytical knowledge, skills, and abilities (KSAs). By identifying critical analytical KSAs, our research can assist HR departments in improving training, recruitment, and development processes to better integrate HR analytics. Furthermore, we identify significant gaps in analytical skills among HR practitioners, offering potential solutions to bridge these gaps. From a theoretical perspective, our precise definition of HR “analytical skills” in terms of analytic KSAs can enhance research on the effects of HR analytics on organizational performance. This refined understanding can lead to more nuanced and impactful studies, providing deeper insights into how HR analytics contributes to achieving strategic business goals. ORIGINALITY AND VALUE: Our research offers three original insights. First, we establish a standard for HR analyst skills based on the O*NET content model, providing a clear framework for the essential knowledge, skills, and abilities required in HR analytics. Second, we identify significant analytical gaps among HR professionals, highlighting areas that need development and attention. Third, we recognize the necessity for closer cooperation between HR and professional analysts, emphasizing that such collaboration is crucial for maximizing the benefits of computer-assisted HR analytics. These insights ensure that HR analytics can move beyond being a management fad and have a real, lasting impact on business outcomes.
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